Training Courses

Collective Investment Schemes Workshop

Category: Investment Products

Course level: Introductory

Open

This 3 1/2 hour workshop has been designed to provide a fast-track review of collective investment schemes in the European retail markets. It covers regulations, marketing and distribution, investment and borrowing powers, pricing and dealing.

Case studies using real life funds form an integral part of the course, to enable delegates to consolidate the information and provide the basis for group discussions.

No prior knowledge is assumed and all terms will be fully explained.

Case studies form an integral part of the course, to allow the delegates to consolidate the information and provide the basis for group discussions.

Objectives

At the end of this course delegates will have a greater understanding of:

  • umbrella fund structures and share classes
  • role of the fund operator, trustee, depositary, investment manager, administrator and transfer agent
  • calculation of NAV and share prices
  • costs and expenses associated with open ended funds
  • the impact of UCITS III on investment strategies and the extra risks associated with the use of “wider powers”

Length

3 1/2 hours

Course Content

Types of collective investment scheme

Unit trusts
SICAVs, OEICs, ICVCs – umbrella structure explained
UCITS vs non-UCITS funds
Authorised vs unauthorised funds
Qualified Investor Schemes

Fund distribution

Direct sales
Fund supermarkets and wraps
Role of advisers
Multi managers
Discussion: different fund distribution platforms

Fund documentation

Fund prospectus – required information and how to find it
Client reports
Case study: Looking at a fund prospectus
Case Study: Looking at a typical annual client report and monthly fact sheet

Share/unit classes

Retail vs institutional share classes
Charging structures
Discussion: looking at share classes in a typical fund and the charges

Business relationships

The role of the trustee/depositary
The manager/ACD of the fund
Sub contracting investment management
Role of the custodian
Administration

Financial promotions

Customer classification under MiFID
UCITS II and Simplified Prospectus
Required information and presentation standards
New proposals for customer information (KII documents)

Pricing open-ended funds

Forward vs historic pricing principles
Calculating NAV
Calculating the creation, bid and offer price for dual priced funds
Worked example: Calculating the price of a dual-priced fund
Calculating the mid price for single priced funds
Dilution levy vs swinging mid price
Worked example: Calculating the price of a single-priced fund
Case study: Looking at published fund prices for single and dual-priced funds

Dealing in open-ended funds

Processing buying and selling orders
Cash vs in specie payments

Creations and cancellations

Charges and expenses

Initial charges

AMC
Switching fees
Performance Fees (COLL)
Focus fund charges

Investment and borrowing powers under UCITS III

Approved securities
Spread and concentration rules
Mixed funds
Using derivatives
EPM rules, shorting opportunities, new rules for cover
Funds of funds
[This workshop will look at the specific rules applying in the UK, Dublin, Channel Islands or other EU Member States, according to where the course is run]
Case study: Looking at the current investment strategy of a CIS using a monthly report

Income distribution

Sources of income
Income accrual
Income distribution
Equalisation
Worked example of equalisation calculation

Taxation

Fund taxes
Corporation tax, Withholding tax, SDRT, VAT
Investor taxes
CGT, Income tax, SDRT

 

This course would be suitable for:

  • Client services and call centres
  • Finance and accounting
  • HR and training
  • Investment administration and operations
  • Investment professionals
  • IT and software developers
  • Legal & Compliance
  • New entrants
  • PR and recruitment firms
  • Risk management
  • Sales and marketing
  • Team leaders and supervisors

This course would be suitable for these exams:

  • IMC
  • SII IAQ - Collective Investment Schemes
  • UKSIP - Investment Operations
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